We have also begun construction on a second overseas manufacturing base in Bardstown, Kentucky, where we are planning to start manufacturing in spring 2019.
For the Systems Solutions Business and Clock Business that operate mainly in Japanese markets,the costs for procuring from overseas manufacturing bases in foreign currency may be affected by exchange rate fluctuations.
In support of overseas manufacturing bases, it is not only personal guidance, but it is developing organizational support that utilizes JMAC's global network(collaboration between Japanese and local consultants).
In the fabricated aluminum and processed aluminum products business,we are reinforcing our overseas manufacturing bases in the aim of becoming the world leader in extruded multi-port tubes for automotive heat exchangers.
It is estimated that air transport costs currently cost roughly 12-16 times more than transporting the same goods by ocean,making ocean transport the obvious choice for most overseas manufacturing firms.
With an aim to secure consistency of environmental activities in the JDI Group,we are making efforts to strengthen governance of overseas manufacturing subsidiaries by meeting periodically with them.
Our overseas manufacturing bases also comply with the laws and regulations of each country and are engaged in a wide range of activities such as promoting energy reduction and recycling, volunteer activities such as clean ups, and support for disaster-stricken areas in case of natural disaster.
Our goal in clarifying dividend levels for the period of the plan is based on our aims of prioritizing the allocation of cash flow in order to invest in enhancing corporate value,primarily by enhancing production capacity at overseas manufacturing bases and responding to needs for automotive materials in Japan.
The company established SCIV as a first overseas manufacturing base in June 2010, and plans to expand its local market share in Vietnam with the growing economy, by supplying high grade products applying synthetic resin molding technology developed in Japan.
MMC established"strengthening global competitiveness" as one of the company-wide growth strategy in the Medium-term Management Plan,"Materials Premium 2016". In that context,MMC will attempt to realize growth through the expansion of overseas manufacturing and sales bases among other business developments, especially in developing countries.
According to its investment ratio, Marubeni is expected to take delivery of 30%(24 thousand tons per year) of copper cathodes produced from the project, which is an average annual production of approximately 80 thousand tons per year,and sell the copper cathodes to the overseas manufacturing base of Japanese copper metal users, including electric wire makers, mostly in Asia.
Based on the background above, Minebea believes that we can develop next-generation products and services which have high added value and offer competitive prices by mutually linking, more closely than ever before, Minebea's optical technology,circuit technology and know-how regarding overseas manufacturing with Iwasaki's development technology and design technology relating to street lighting appliances.
Sanoh will continue to actively introduce robotized processes into not only our plants within Japan,but also into our production bases overseas with the aim of standardizing production quality and stable supply around the world.
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